Fertiliser market awaits new season prices

Friday, 22 June, 2001


By FWi staff


WHILST movement of fertiliser onto farm has been steady, all of it destined for immediate use, there has been no change whatsoever in pricing.


Manufacturers, traders and importers all await the setting of the new season price by Terra, the UK nitrogen market leaders.


The announcement is rumoured to be imminent but no great surprises are expected.


The only question, it seems, is how far forward prices are to be quoted and what prospects there will be for the early buyer.


Meanwhile, the latest press release from the NFU on its “fertiliser tariff battle” has many in the industry scratching their heads.


A meeting for initial discussions on proposals to impose anti-dumping tariffs on certain sources of urea imported into Europe has led the NFU to write to the DTI to fight such a proposal.


No one wishes to see fertiliser costs raised unnecessarily for the UK farmer, but the bulk of the 760,000 tonne of urea imported into Britain last year was for industrial use and only 5% of Britains total fertiliser nitrogen use is accounted for by urea.


Anti-dumping levies only have an affect at the farm gate when European prices are unsustainable.


Their removal today would have no impact on farm price and with 400,000 tonnes of Britains 950,000 tonnes of imports coming from within Europe, the tonnage represented by levied imports is only 22% of the UK nitrogen market.


Hopefully the outcome of the investigations by the OFT in the operations of the UK fertiliser market will clear the air and contribute to a sustainable future for British and European manufacturers and their customers.

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